What is Operating Margin?

A measure of profitability that tells the proportion of revenue that will eventually become profit for a company. The formula for calculating operating margin is Operating Income divided by Revenue. As such, Operating Margin is a measurement of what proportion of a company’s Revenue is left over, before taxes and other indirect costs such as interest expense, nonrecurring items (such as accounting adjustments, legal judgments, or one-time transactions), and other income statement items not directly related to a company’s core business operations. Also sometimes referred to as Return on Sales.

20 Easy Ways Trucking Companies Can Increase Profit Margins This Month

20 Easy Ways Trucking Companies Can Increase Profit Margins This Month

You’re a great truck driver. You know how to choose the best routes, are always reliable and deliver on time, every time. But it takes…
How to Improve Cash Flow and Enhance Your Trucking Company’s Profitability

How to Improve Cash Flow and Enhance Your Trucking Company’s Profitability

How do trucking companies make money? The basic principle is simple; trucking companies make money by driving loaded miles and charging a higher rate-per-mile than…
How to Easily Calculate and Improve Your Trucking Company Profit Margins

How to Easily Calculate and Improve Your Trucking Company Profit Margins

Just like any other business, your trucking company needs to run at a profit or it will quickly fail. Sounds like stating the obvious doesn’t…

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